Evans Senior Investments Sells Value-Add Assisted Living
Evans Senior Investments (ESI) successfully sold a 92-unit assisted living/memory care community, for an undisclosed price, in Greendale, Wisconsin (about 10 miles south of Milwaukee). Built in 1998, with additions in 1999 and 2010, this three-building campus includes 92 units of assisted living and memory care, licensed as a Community-Based Residential Facility. Occupancy has been increasing since January 2016, and now sits in the low-90s, with a significant Medicaid census. Chicago-based SHA Capital Partners was the buyer and brought in Matthews Senior Living to operate the community, which is considered to be a value-add opportunity for them. ESI represented an independent owner in the... Read More »
REITs Having Trouble With Seniors Housing
We have heard more about REITs and their skilled nursing troubles, but LTC Properties’ announcement a month ago has been followed by a much larger seniors housing problem at Ventas. At first, everyone thought it was the skilled nursing sector that was going to give the healthcare REITs heartburn. After all, that was the sector struggling the most, right? But seniors housing has not been as resilient as previously thought. Brookdale Senior Living has had its well-documented problems, and last month LTC Properties disclosed issues it was having with underperforming memory care tenants. Then we had last week’s disclosure by Ventas that it was moving more than 70 communities leased to... Read More »
Summerfield Senior Living Sells
Washington State-based Morningdew, LLC is looking to expand its presence in Florida, and just added a third property to its portfolio in the Sunshine State. Built in 1998 in Summerfield (just north of The Villages), the assisted living community has 46 beds in 42 units. Under its ownership by the not-for-profit Marion County Hospice, the community did not boast a strong operating margin. Ken and Damien Carriero of Colliers International were hired to facilitate the off-market transaction. Interestingly, an individual had the property under contract with the seller, but through a clause stating that he could assign the contract, decided to sell. So, Morningdew purchased the contract for... Read More »
CareTrust REIT Acquires in California
CareTrust REIT is on a tear this year, having acquired 33 senior care properties since the start of 2017 and bringing its portfolio to 184 total properties. In all of this activity, CareTrust has also not been limited to a specific geography, making acquisitions in 10 states across the country. Despite being headquartered in San Clemente, California, CareTrust waited until Halloween to make its first Golden State acquisition of the year, and entered into a new tenant relationship at the same time. The REIT announced it had bought three skilled nursing facilities, totaling 528 beds, in Southern California for approximately $69 million, or about $130,700 per unit. Operating the facilities... Read More »
Harborview At It Again
Harborview Capital Partners is back in the news, working on behalf of a Tennessee-based borrower to refinance its assisted living community in Putnam County, Tennessee. Avi Begun of Harborview originated a $6.34 million HUD loan, with a 35-year term, and took advantage of an early rate lock to generate savings for the community. Read More »
Recent Senior Care M&A Deals, Week Ending October 27, 2017
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Athena Health Care SystemsMasonicare at NewtownN/A Local familyCalifornia assisted living community$9.6 million Morningdew, LLCFlorida assisted living community$4.04 million Westminster Communities of FloridaGlenmoor$27.5... Read More »
Getting Brookdale Senior Living Wrong
As recently as two years ago, there were a lot of investors and analysts who were very positive on the prospects for Brookdale Senior Living. Rarely have so many people been so wrong. And these are smart people. Perhaps the most egregious analysis came from Glenview Capital Management just two years ago. How wrong can wrong be? In August of 2015, they listed six reasonsthat would drive Brookdale’s growth. One was that new demand is exceeding supply across the industry. Whoops. A second reason was “private negotiated rates,” not being aware that what was negotiated was discounts. Whoops again. And the one that made us scratch our heads was, “Senior living facilities are considered to be... Read More »
Cushman & Wakefield Aces St. Augustine Sale
An amenity-rich senior living community just sold in St. Augustine, Florida, with the help of Allen McMurtry, Paul Carr, David Kliewer and Megan Fetter of Cushman & Wakefield’s Tampa office. Built in 2001, the community sits on about 40 acres in the World Golf Village and features 87 cottage homes, 70 independent living units, 36 assisted living units and 30 private skilled nursing beds. In addition to access to two world-class golf courses, residents also enjoy a clubhouse, heated outdoor lap pool, putting green, bocce court, pub and fitness center. Life Care St. John’s Inc., an affiliate of Life Care Pastoral Services, sold the property to Westminster Communities of Florida for $27.5... Read More »
The JCH Group Shows Its Range
Nick Stahler and Jim Hazzard of The JCH Group had their work cut out for them but got the job done, selling a 97-unit assisted living community in Fulton, California on behalf of a family trust. There are some issues the new owner will have to address, however. Built in 1976, the community is in need of some renovations, over $3 million, in fact, estimated by the buyer. The payor mix could also significantly improve, as the community is almost entirely made up of SSI (Supplemental Security Income) residents, which doesn’t necessarily help the bottom line. Every room can be double occupied, with an 88% census based on the 194 beds at the time of the sale. Lastly, owned and operated by a... Read More »
HJ Sims & HUD Plus
With every seniors housing development project, it is always important to have a contingency plan. Having a trusted financing partner goes a long way, too. That is why when a joint venture led by Affinity Living Group ran into some unexpected problems during the lease-up stage of their portfolio of four newly developed assisted living/memory care communities in North Carolina, they turned to HJ Sims to arrange some additional capital. Built between August 2015 and January 2017, these communities combine for 120 assisted living and 152 memory care units, and were developed by the joint venture, with Affinity as the operator. The venture had contributed over $7 million of equity to the... Read More »Schedule a demo
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